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For Floyd Distributors in Problem 29, we were given Q* = 25, D = 200, Ch = $5, and a normal lead-time demand distribution with µ = 12 and σ = 2.5.
a. What is Floyd's reorder point if the firm is willing to tolerate two stockouts during the year?
b. What is Floyd's reorder point if the firm wants to restrict the probability of a stockout on any one cycle to at most 1%?
c. What are the safety stock levels and the annual safety stock costs for the reorder points found in parts (a) and (b)?
Consultant Air focuses business on high-paying McKinsey consultants, but to fill planes, it also carries the general public. It is flying a 100-seat jet from Atlanta to San Francisco and the consultant demand is normally distributed with mean 65 and ..
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Select a product or service that you would like to sell, and start the process of finalizing a new venture business plan proposal to winbusiness support and funding. Include the following elements
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